BILL NUMBER: AB 236	CHAPTERED  09/29/99

	CHAPTER   567
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 28, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   SEPTEMBER 2, 1999
	AMENDED IN SENATE   AUGUST 17, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Assembly Members Honda and Cunneen
   (Principal coauthor:  Assembly Member Jackson)
   (Principal coauthor:  Senator O'Connell)
   (Coauthors:  Assembly Members Alquist, Dutra, Frusetta, and
Lempert)
   (Coauthors:  Senators Figueroa, McPherson, and Sher)

                        JANUARY 28, 1999

   An act to add Sections 96.27, 96.52, and 97.39 to the Revenue and
Taxation Code, relating to local government finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 236, Honda.  Property tax revenue allocations:  Counties of
Santa Barbara and Santa Clara.
   Existing property tax law provides for the annual allocation of
property tax revenues in each county in accordance with property tax
revenue apportionment factors that are determined for each recipient
jurisdiction in accordance with a specified formula.
   This bill would, except as otherwise specified, deem to be correct
those property tax revenue apportionment factors that were applied
in allocating property tax revenues in the County of Santa Clara for
the Santa Clara County Central Fire Protection District for each
fiscal year from the 1988-89 fiscal year through the 1996-97 fiscal
year.  The bill would also deem correct those property tax
apportionment factors that were applied in allocating property tax
revenues for specified fire protection districts in the County of
Santa Barbara for the 1993-94 fiscal year through and including the
1996-97 fiscal year.  This bill would, however, require property tax
revenue apportionment factors applied in allocating property tax
revenue in the Counties of Santa Barbara and Santa Clara for the
1997-98 fiscal year, and each fiscal year thereafter, to be
determined on the basis of property tax revenue apportionment factors
for prior fiscal years that have been corrected or adjusted as would
be required if those prior apportionment factors had not been deemed
correct by this bill.
   Existing property tax law requires the county auditor, in each
fiscal year, to allocate property tax revenue to local jurisdictions
in accordance with specified formulas and procedures, and generally
requires that each jurisdiction be allocated an amount equal to the
total of the amount of revenue allocated to that jurisdiction in the
prior fiscal year, subject to certain modifications, and that
jurisdiction's portion of the annual tax increment, as defined.
Existing property tax law also reduces the amounts of ad valorem
property tax revenue that would otherwise be annually allocated to
the county, cities, and special districts pursuant to these general
allocation requirements by requiring, for purposes of determining
property tax revenue allocations in each county for the 1992-93 and
1993-94 fiscal years, that the amounts of property tax revenue deemed
allocated in the prior fiscal year to the county, cities, and
special districts be reduced in accordance with certain formulas.  It
requires that the revenues not allocated to the county, cities, and
special districts as a result of these reductions be transferred to
the Educational Revenue Augmentation Fund in that county for
allocation to school districts, community college districts, and the
county office of education.
   This bill would deem to be correct those transfers to the
Educational Revenue Augmentation Fund of the County of Santa Clara
made by specified fire districts in that county for each fiscal year
through the 1996-97 fiscal year.  This bill would, however, require
property tax apportionment factors applied in allocating property tax
revenue to these districts for the 1997-98 fiscal year, and each
fiscal year thereafter, to be determined on the basis of
apportionment factors for prior fiscal years that have been corrected
or adjusted as would be required if those prior apportionment
factors had not been deemed correct by this bill.
   This bill would make legislative findings and declarations as to
the necessity for special statutes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 96.27 is added to the Revenue and Taxation
Code, to read:
   96.27.  Notwithstanding any other provision of law, the property
tax apportionment factors applied in allocating property tax revenues
in the County of Santa Clara for the Santa Clara County Central Fire
Protection District for each fiscal year from the 1988-89 fiscal
year through the 1996-97 fiscal year shall be deemed correct, except
to the extent that those apportionment factors reflect any
calculation errors made in implementing Article 3 (commencing with
Section 97).  However, commencing with the 1997-98 fiscal year,
property tax apportionment factors applied in allocating property tax
revenue in the County of Santa Clara shall be determined on the
basis of property tax apportionment factors for prior fiscal years
that have been fully corrected or adjusted as would be required in
the absence of the preceding sentence.
  SEC. 2.  Section 96.52 is added to the Revenue and Taxation Code,
to read:
   96.52.  Notwithstanding any other provision of law, the property
tax apportionment factors applied in allocating property tax revenues
in the County of Santa Barbara for the Carpinteria-Summerland Fire
Protection District, the Montecito Fire Protection District, and the
Orcutt Fire Protection District for the 1993-94 fiscal year through
and including the 1996-97 fiscal year shall be deemed correct.
However, commencing with the 1997-98 fiscal year, property tax
apportionment factors applied in allocating property tax revenue for
these fire protection districts in the County of Santa Barbara shall
be determined on the basis of apportionment factors for prior fiscal
years that have been corrected or adjusted as would be required in
the absence of the preceding sentence.
  SEC. 3.  Section 97.39 is added to the Revenue and Taxation Code,
to read:
   97.39.  (a) Notwithstanding any other provision of law, the amount
of each allocation that was made to the Educational Revenue
Augmentation Fund of the County of Santa Clara in any fiscal year, up
to and including the 1996-97 fiscal year, as the result of a
reduction amount calculated pursuant to Section 97.2 or 97.3 for the
Los Altos County Fire Protection District, the Santa Clara County
Central Fire Protection District, the Saratoga Fire Protection
District, or the South Santa Clara County Fire District, shall be
deemed correct.
   (b) No reduction or correction may be made, in response to a
calculation error, to an allocation that was made to the Educational
Revenue Augmentation Fund of the County of Santa Clara in any fiscal
year, up to and including the 1996-97 fiscal year, as the result of a
reduction amount calculated pursuant to Section 97.2 or 97.3 for a
County of Santa Clara fire district listed in subdivision (a).
However, in the 1997-98 fiscal year and each fiscal year thereafter,
each allocation that is made to the Educational Revenue Augmentation
Fund of the County of Santa Clara as the result of a reduction amount
calculated pursuant to Section 97.2 or 97.3 for a County of Santa
Clara fire district listed in subdivision (a) shall be made in that
amount that fully reflects any reduction or correction that would be
required to be made to a corresponding allocation in a prior fiscal
year in the absence of this section.
  SEC. 4.  The Legislature finds and declares that special laws are
necessary and that general laws cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the uniquely severe and retroactive fiscal difficulties
and disruptions that will be suffered by the Los Altos County Fire
Protection District, the Santa Clara County Central Fire Protection
District, the Saratoga Fire Protection District, the South Santa
Clara County Fire District, the Carpinteria-Summerland Fire
Protection District, the Montecito Fire Protection District, and the
Orcutt Fire Protection District if this act does not become
operative.
